Is the Real Estate Bubble going to burst? (houses, buyer)

[RyanPKull]

Actually, Im dealing with quite a lot on my plate as it is. I do not deal with too many sellers any more. I strictly deal with buyers and I have quite an abundance of them. I spend half of my day on the computer researching comparables, neighborhoods and statistics that my buyers would like to be informed about. So I figure, while I'm on this site, maybe I can help people with a little bit of insight of my own on the Southern NJ market. I learn new things everyday. With that said, quite a bit of this message board consists of homebuyers.. the more horror stories or any story in general I read from them, I feed off of and it makes me even better at what I do. I am in the customer service business, I am not here to advertise at all. Just to learn and pick the homebuyers brains!!!

[RyanPKull]

Originally Posted by Need_affordable_home

We all know the market is very slow and house prices are eroding further every month. Ive read that the situation wont improve till a couple years from now. Ill be moving out before that but if houses get really cheap, I may move again and into a bigger house!

I had just done an open house 2 weekends ago for a fellow agent of mine. I am actually listing it for her because she is not licensed in NJ anymore, she was forced to work in PA. Her house is still in NJ. She put the house out there for $558,900, within 3 months, she dropped it down to $449,900. Then again, she is an agent herself, I do not tell her to reduce the price, she tells me to. haha.

So, you're right..You will find the deals in this market!

[exhdo1]

The news this morning reports that New Jersey home prices will decrease aprox. 3.5%. They quoted nationwide stats and I believe (if I heard right) that Sarasota Florida will see a 14% decrease. My home has quadrupled in value from the time I bought so I still feel very comfortable with the value of my home. I feel bad for people that have purchased recently that might have to sell only to find out that their home may be worth less than what they actually owe on it. Sellers are offering incentives to buy. One person was throwing in the use of a Mercedes Benz for two years. Another was adding his 32 foot sailboat to the purchasers of his waterfront home. I know back in 1991 I sold a home that I purchased 1988. I lost nearly 40K on the sale price not to mention the 30K I put into it. I guess it may be a cyclical thing.

[RyanPKull]

Originally Posted by exhdo1

The news this morning reports that New Jersey home prices will decrease aprox. 3.5%. They quoted nationwide stats and I believe (if I heard right) that Sarasota Florida will see a 14% decrease. My home has quadrupled in value from the time I bought so I still feel very comfortable with the value of my home. I feel bad for people that have purchased recently that might have to sell only to find out that their home may be worth less than what they actually owe on it. Sellers are offering incentives to buy. One person was throwing in the use of a Mercedes Benz for two years. Another was adding his 32 foot sailboat to the purchasers of his waterfront home. I know back in 1991 I sold a home that I purchased 1988. I lost nearly 40K on the sale price not to mention the 30K I put into it. I guess it may be a cyclical thing.

Yes, sellers are offering incentives here in South Jersey also. This market is nowhere near nor ever will be a 1991 market. With all of the loan programs available, almost anyone can get into a home. In 1991, you only had but a fraction of the loans to choose from and most people did not qualify. People have been adding cars, boats, rv's, dirt bikes to the sale of properties for years now. It's only being mentioned now because the market isn't as heavy as it was the past few years.

Investors are mad that they are not making 70-80k off of a rehab home anymore. They only leave with a 40k profit for a 2-3 week project! Poor them!

Statistics do not show how many real estate agent's left the business because of this market! Agent's made a TON of money from 2001-2005. They did not have to do ANYTHING! Now that they have to cater to these buyers and actually DO SOME WORK, they quit! They never spent hundreds of dollars in marketing a home, because they didnt NEED TO! The business came to them and they were spoiled!

With that said, the agent's who have never marketed a home, still do not intend to do it even in this market! Either that or they do not know how or where.

My point being..The market over the past few years has spoiled A LOT of people. Including RE Agents and Homeowners. That is the reason for the prices dropping and the sales slowing. Not the interest rates, they are still good. Not the economy, that's Ok too!

Find a good agent that will market your home the right way, the way they have done it before the big y2k boom, you will get your home sold!

Here is a statistic for you. The top 15% of real estate agent's are responsible for 90%+ of homes sold in this country!

Did anyone know that?

Some RE Agent's really tick me off!

Sorry, Im just venting..
Thanks for feedback..

[Need_affordable_home]

whoa I totally agree! Positive reputation for you! (id be honored to recieve some) I guess its a good thing the market has returned to normal, well prices have a ways to drop before equibrim is reached.

[Nancy Lynne]

Trying to convince anyhow that isn't in the business of buying or selling homes that the market isnt correcting itself in ALL areas of NJ is just plain ignorant.

I live in an "affluent area" of Monmouth County --- yes, were B. Springsteen lives, etc., --- and the houses are NOT selling, no matter how low they are priced. I just "gave mine away" at under the assessed value, because I didn't want to pay the new "double taxes", and I didn't want to have to sit on it for the next 2 years while the market settles downs.

Yes, I am bitter, but it is not personal (only to me!: ) ---

Even in Rumson - where homes are listed for 3-15M -- they are being reduced by a million here and there over the last year.

[RyanPKull]

Nancy,

I like you and your honesty. I am not arguing nor mad, just pointing out some friendly insight.

If your in the market for a million dollar home in a million dollar area, you need a million dollar+ bank account. The average buyer for a million dollar home has not much concern with financial issues. They do not care how much they make off of their home, they just want a nice place to live. They do not need to make a huge profit when selling because #1- they have their million dollar bank account...#2- they do not need to sell for profit because they sometimes retire in that million dollar home.

Homes in the million dollar range have ALWAYS sat on the market for a long period of time because not everyone can afford a million dollar property and everything that goes along with it.

Feel free to reply back with any comments..

Ryan P. Kull

[perquis1]

I am in florida now and have a lot for sale in Buena, Buena Vista Twp, What would it sell for today its an oversize lot.

With the drop in the market, i am worried but need to sell

[RyanPKull]

Originally Posted by perquis1

I am in florida now and have a lot for sale in Buena, Buena Vista Twp, What would it sell for today its an oversize lot.

With the drop in the market, i am worried but need to sell

It really depends on a number of scenario's. I sent you some information over the private message. Maybe that can help you. Good Luck!

Ryan P. Kull

[exhdo1]

Originally Posted by Nancy Lynne

Trying to convince anyhow that isn't in the business of buying or selling homes that the market isnt correcting itself in ALL areas of NJ is just plain ignorant.

I live in an "affluent area" of Monmouth County --- yes, were B. Springsteen lives, etc., --- and the houses are NOT selling, no matter how low they are priced. I just "gave mine away" at under the assessed value, because I didn't want to pay the new "double taxes", and I didn't want to have to sit on it for the next 2 years while the market settles downs.

Yes, I am bitter, but it is not personal (only to me!: ) ---

Even in Rumson - where homes are listed for 3-15M -- they are being reduced by a million here and there over the last year.

I was thinking of reducing my home about a million but then I'd have to give the buyer my house plus 400K in cash which would put me at a financial disadvantage!